Three major works packages totalling nearly $190 million have been awarded to Queensland-based companies as part of the next phase of the Borumba Pumped Hydro Project. This significant milestone brings the state’s 2000MW renewable energy project closer to delivering long-duration energy storage, a key component in Queensland’s clean energy transition.
The first contract, valued at $40 million, was awarded to the Water2Wire Joint Venture (JV) to lead the design and engineering of seven dams. The Water2Wire JV is composed of leading engineering firms GHD, Mott MacDonald, and Stantec. Six new dams will be constructed to form the project’s upper reservoir, while one additional dam will replace the current Borumba Dam wall, located immediately downstream. This new wall will expand Lake Borumba’s capacity, enhancing the energy storage capability for the pumped hydro system. These dams are crucial for ensuring the project can store energy efficiently, helping to stabilize the grid during high demand.
The second contract, valued at $39.9 million, was awarded to the AFRY-Aurecon Joint Venture. This partnership, involving global engineering firms AFRY and Aurecon, will focus on the front-end engineering design for the Pumped Hydro Energy Storage (PHES) system. The scope includes technical work related to turbine design, the layout of underground caverns, tunnel waterway design, and other key components that enable the energy storage system to function efficiently. AFRY brings over 125 years of hydropower expertise, while Aurecon is known for its role in mega-infrastructure projects both in Australia and internationally.
The third and largest contract, worth approximately $111 million, has been awarded to Decmil, an Australian-owned engineering and construction company. Decmil will design and construct two state-of-the-art temporary worker camps to house up to 336 workers each. The camps, located on cleared freehold land at the project site, will provide a range of amenities, including wellness rooms, gyms, social spaces, and laundry facilities. By building these camps on-site, Queensland Hydro aims to reduce the impact on local housing markets and minimize traffic in the region. These camps will be constructed in a staged approach to accommodate the growing workforce during the project’s two-year exploratory works phase.
Impact on Queensland’s energy future
The $14.2 billion Borumba Pumped Hydro Project, located west of the Sunshine Coast, is designed to provide energy stability and reliability as Queensland transitions to renewable energy. It will store energy by using excess renewable energy to pump water from a lower reservoir to a higher one during periods of low demand, then release it to generate electricity when demand peaks. This system will play a crucial role in ensuring Queensland’s electricity grid is both sustainable and stable, especially as more renewable energy sources like solar and wind come online.
Minister for Energy and Clean Economy Jobs, Mick de Brenni, stressed the importance of the contracts in advancing the project: “This is a huge milestone for one of the most important renewable energy projects anywhere in Australia. These contracts bring local knowledge and global expertise together to deliver cheaper, cleaner, and more secure electricity to all Queenslanders. The Miles Labor Government’s renewable energy plan, driven by projects like Borumba Pumped Hydro, means more local jobs, cheaper electricity, and a cleaner environment.”
He also noted the broader economic impact: “The transition to renewable energy will result in millions of dollars of regional development and investment, support local economies, and create thousands of jobs for Queenslanders.”
Queensland Hydro CEO, Kieran Cusack, highlighted the technical benefits of the project and the measures taken to mitigate its impact on local communities:
“Pumped hydro is unquestionably the right technology for Queensland’s clean energy transition. We’re partnering with Australian and international experts to deliver safe and reliable energy storage. At the same time, we’re taking steps to reduce potential disruptions in small regional communities. By housing as many workers as possible in on-site camps, we’re easing pressure on local housing and reducing hundreds of vehicle movements each day. Minimizing the impact on housing and traffic is the right thing to do for the community and for our workforce.”
Cusack further emphasized the project’s long-term benefits: “The Borumba Project will provide essential energy storage and play a critical role in decarbonizing the energy system while creating jobs and boosting the local economy.”
The initial construction of the worker camps will commence soon, with full development of the two camps planned over the next two years. Queensland Hydro is also conducting environmental studies as part of the project’s Environmental Impact Statement. Main construction works are scheduled to begin in 2026, subject to regulatory approvals.
The Borumba Pumped Hydro Project is expected to play a crucial role in Queensland’s renewable energy strategy, providing long-duration energy storage that can help stabilize the grid and ensure reliable electricity for decades to come.
